Gold Expected To Fall As Dollar Gains (GLD, GDX)

Bloomberg reports that following a stronger dollar, gold may decline in New York; since a stronger dollar alleviates the need of gold as an alternative investment.

After reports that U.S. employment declined less than economists’ forecast in February, the dollar gained 0.4% against the euro. Gold futures for April delivery lost 20 cents to $1,132.90 an ounce on the New York Mercantile Exchange’s Comex unit at 9:11 a.m. local time.

Gold fell the most in a week yesterday, as the euro weakened after the ECB extended some economic stimulus measures and left its benchmark interest rate at 1%.

The SPDR Gold Trust (ETF) (NYSE: GLD) closed at $110.81, while the Market Vectors Gold Miners (ETF) (NYSE: GDX) closed at $46.42, on Friday.